IRISH SOLAR ENERGY
ASSOCIATION
Submission for Green Paper on Energy Policy in Ireland
31st July 2014
Table of Contents
Executive Summary................................................................................................................................. 2
Section 1: The case for Solar Power in Ireland ....................................................................................... 3
1.
Enough sun in Ireland ............................................................................................................. 3
2.
Falling costs ............................................................................................................................. 4
3.
Rapid deployment ................................................................................................................... 5
4.
Empowering households and businesses through distributed generation ............................ 5
5.
Positive Public Perception....................................................................................................... 6
6.
Energy Security ....................................................................................................................... 6
7.
Economic Opportunities ......................................................................................................... 7
8.
Complement to Wind.............................................................................................................. 7
9.
Late mover advantage ............................................................................................................ 8
Section 2: Policy Recommendations ....................................................................................................... 9
1.
Define an achievable target of 500MW of installed capacity by 2020 ................................... 9
2.
Implement sustainable support mechanisms ....................................................................... 10
3.
Define clear planning guidelines ........................................................................................... 13
4.
Implement clear grid application guidelines......................................................................... 13
Section 3: Costs and Benefits ................................................................................................................ 15
Job Creation .................................................................................................................................. 16
Conclusion ............................................................................................................................................. 17
Appendix 1: Irish Solar Energy Association members........................................................................... 18
1
IRISH SOLAR ENERGY ASSOCIATION
Submission for Green Paper on Energy Policy in Ireland
Executive Summary
To date, solar energy has been overlooked in Ireland with the focus on other renewable energy
sources, particularly wind. However, as many other Northern European countries have recognised,
solar is an important component of the renewable energy mix and provides a significant opportunity
for Ireland to accelerate the rollout of renewable energy at an affordable cost, while creating new
employment opportunities.
The Irish Solar Energy Association believes that, with the right policy framework, solar energy could
account for 10% of renewable energy generation capacity by 2020, representing 500MW of installed
generation capacity. This will make a significant contribution to Ireland’s 2020 carbon reduction
targets, create a minimum of 3,000 jobs and solidify Ireland’s position as a Centre of Excellence for
Renewable Energy, which has recently been reinforced by the selection of Dublin as the location for
the 2014 Renewable Energy Finance Forum.
This paper is comprised of three sections. Section 1 focuses on the case for solar energy in Ireland
and shows how other countries with similar levels of sunlight such as the UK have successfully rolled
out solar power programmes. Section 2 outlines a series of policy recommendations for Ireland,
including lessons to avoid from other countries that would stimulate the growth of the solar industry
in Ireland, without creating an unnecessary burden for the taxpayer. Finally, Section 3 provides a
forecast of the likely costs to the exchequer to support the rollout of 500MW and concludes that, at
an average subsidy cost of €0.02 per kwh over 20 years, solar represents extraordinarily good value
as a source of renewable energy.
Key Facts
1. Solar radiation levels in Ireland are 78% of the levels found in Madrid
2. The costs of solar have fallen by 42% since 2011. This means that a euro invested in solar in
Ireland in 2014 will generate the same amount of electricity as a euro invested in solar in
Greece in 2011
3. 500MW of solar capacity could easily be installed by 2020, representing 10% of total
renewable energy capacity in Ireland
4. The costs of solar are expected to reach grid parity between 2020 and 2025
5. A REFIT mechanism for solar starting at €0.15/kwh in 2015 and declining by 5% per annum
would cost the taxpayer an average of €0.02/kwh over 20 years
6. Six jobs are created for every MW of solar installed. 3,000 jobs could be created in solar by
2020
7. Ireland benefits from Late Mover advantage and can benefit from the experiences of other
countries to implement a sustainable policy framework to roll out solar
2
Section 1: The case for Solar Power in Ireland
Solar is the only major renewable energy technology that does not qualify for a Renewable Energy
Feed In Tariff (‘REFIT’) in Ireland. As a consequence, solar only accounts for 0.3% of total primary
energy production in Ireland compared to biomass (16.17%), wind (12.19%) and hydro (2.62%). This
contrasts with other Northern European countries such as Germany and the UK, which have
successfully deployed solar power at a rapid pace over the last decade. This section makes the case
for why solar should be considered an essential part or Ireland renewable energy mix and
recommends the establishment of a target of 500MW of installed solar capacity by 2020.
1. Enough sun in Ireland
While it is commonly believed that the poor Irish weather limits the potential of solar power, the
solar radiation in Wexford is 78% of the level enjoyed in Madrid, and is equivalent to the levels
found in most of the UK, (see figure 1) which has successfully deployed 4,460 MW of solar in the
past 5 years. Even in Northern Ireland, solar power is feasible as demonstrated by the fact that the
first planning permission for a utility-scale solar farm on the island of Ireland was granted for in
Bishopscourt, county Down in early 2014.
Figure 1. Solar Radiation in Ireland and Britain
3
2. Falling costs
Notwithstanding the price controls on the importation of solar panels introduced by the European
Commission in 20131 the costs of solar modules in Europe have fallen by 42% since 2011 from
€0.96/w to €0.56/w (see figure 2). This contrasts heavily with energy prices in Ireland, which have
increased by 27% in the same period. From a solar resource perspective, the cost reduction means
that €1,000 invested in a solar project in Greece in 2011, will generate the same amount of
electricity as €1,000 invested in a solar project in Athlone in 2014.
Looking forward, installation costs for solar are projected to continue to fall a further 29% from
€1.03/w in 2014 to €0.73/w by 2020 (see table 1). This will make solar a cheaper source of
renewable energy the onshore wind, with grid parity expected no later than 2025.
Figure 2. Solar module prices ($/watt) 2011 - 2014
Table 1. Solar installation cost forecast (€/watt)
Year
€/w
1
2013
1.10
2014
1.03
2015
1.00
2016
0.90
2017
0.86
2018
0.81
2019
0.77
2020
0.73
18 European countries, including Ireland opposed these measures,
4
3. Rapid deployment
The Green Paper forecasts that renewable energy capacity needs to increase from 2,500MW to
4,800MW by 2020 in order to meet Ireland’s carbon reduction commitments. As experience in the
UK and other countries shows, solar can be deployed extremely quickly (see figure 3). Planning and
consultation processes are significantly shorter than for other electricity generation technologies,
while construction is extremely rapid, with a single team able to install 1 – 2MW of capacity on a per
week on large scale solar farms. In addition, the modular nature of solar means that plant sizes can
be adapted to local conditions and capacity can be distributed over a wider area.
In Ireland, there is plenty of suitable land on which to roll out large scale solar projects, particularly
marginal agricultural land and cutaway bogs that are no longer suitable for peat cutting. Solar can
also be implemented across a wide variety of platforms from commercial rooftops to contaminated
landfill sites.
Figure 3. Deployment of Solar in the UK
4. Empowering households and businesses through distributed generation
Ireland is the fourth most expensive country in Europe to buy electricity and rising electricity prices
are of increasing concern to households and businesses. The government’s ability to act is limited by
the fact the price of fossil fuels are entirely outside its control.
Solar is the ideal solution to allow households and business to take control of their energy
generation. Solar PV panels are modular and can be roof mounted in residential areas to allow for
domestic use or installed on commercial rooftops to power businesses.
From a domestic perspective, a typical 3kwp domestic solar system costs €6,000 to install and can
provide 60% of a typical household’s daytime electricity requirements, providing a 7 -8 year payback
period, assuming electricity prices continue to increase by 5% per annum.
Businesses can install much larger systems. A 5,000 m2 factory has enough South facing roof space
for a 250 – 350kw scheme, consuming the power during the working week and exporting to the grid
at weekend. This will generate electricity cost savings of approximately €25,000 per year.
5
Finally, remote areas, such as the Aran Islands, would benefit from community schemes that would
reduce dependence on externally supplied electricity. The Isle of Wight, in Southern England, has
been a net exporter of electricity during summer since the installation of a number of large solar
projects in 2013. Such schemes can be financed directly, or through innovative solutions such as
crowdfunding, where the general public or specific communities invest directly in specific projects
through internet platforms. As an example, BNRG Renewables Limited, an Irish solar company,
successfully raised more than £1 million for three solar project in the UK via the Abundance
crowdfunding platform.
5. Positive Public Perception
Solar energy is popular in across. A recent survey in the UK (DECC, 9th Wave, April 2014) showed that
over 80% of the public surveyed support solar power, well ahead of other renewable technologies.
Similarly, many conservation groups support the deployment of solar plants including the WWF,
RSPB, Friends of the Earth and Greenpeace. In addition, research has shown that, where households
have implemented solar systems, overall energy efficiency improves as they become more aware of
domestic consumption.
Some the key reasons that solar energy is popular include:






Well selected solar sites have little or no Landscape Visual Impact. Projects are below
2.4m in height and can be easily screened with hedgerows.
Solar causes no emissions to the air, soil or water and no noise.
Solar site land can continue to support agricultural activity such as grazing.
Solar parks can diversify farming income and encourage the next generation to keep
farming the land.
As little or no concrete is used in solar park construction solar parks are easily reversible
and the land can be restored in often better condition with enhanced biodiversity.
From an environmental perspective, a typical 1 MW solar plant in Ireland will generate
carbon savings of approximately 350 tonnes per annum, the equivalent of the amount of
carbon absorbed by 12,500 tree seedlings over 10 years.
6. Energy Security
According to the International Energy Agency (IEA) Ireland imports nearly all of its energy needs, as
indigenous energy production only covers 14% of the total primary energy requirement. Given the
dependency on imports, security of supply is clearly a major challenge for Ireland. Security risks
include unpredictable market conditions such as the extreme volatility in oil and gas markets that
impact Irish energy prices substantially.
Solar energy can contribute to the security of supply by providing predictable and reliable
indigenous electricity generation. Based on the above, it is entirely feasible that 500MW of solar
generation capacity could be deployed in Ireland by 2020, making solar account for 10% of
renewable energy mix and, by extension, 1.6% of total energy generation. As grid parity is achieved
between 2020 and 2025, the pace of solar deployment will accelerate and it is feasible that 5% of
Ireland’s total electricity generation will be solar-based by 2025.
6
7. Economic Opportunities
The European Photovoltaic Industry Association (EPIA) states that for every 1MW of solar PV
installed, six new jobs are created. 500 MW of installed capacity, therefore, would generate 3,000
Irish jobs by 2020. Development of the residential solar market will provide a material boost to
Ireland’s construction sector. Installation typically represents 50% of the cost of an installed
domestic system, so a great deal of value is added in terms of skilled labour including electricians,
plumbers and engineers, who will benefit from learning additional skills. Large scale solar projects
also require a significant amount of semi-skilled labour, which can be deployed into the field as
installers and fitters with limited training, providing a career path for the unemployed and unskilled
to become skilled solar technicians.
Despite the lack of domestic market, there are already a number of very successful Irish companies
active in the solar sector internationally. These include Kingspan, Mainstream, Island Renewables,
BNRG Renewables, Power Capital, Carey Glass, Mercury Engineering and Glen Dimplex. Kingspan
alone has invested millions in its ‘insulate and generate’ building integrated solar product and
expects to employ a further 1,000 people within the next three years in manufacturing. This depth of
expertise means that Ireland is well-positioned to kick-start the development of the domestic solar
market and to solidify its position as a Centre of Excellence for renewable energy.
8. Complement to Wind
The output of a solar plant is seasonal and can be predicted very accurately on a monthly basis. In
addition, by its nature, output is predictable on an intraday basis, with peak output occurring during
the middle of the day, when demand is relatively high. As the figures below show, wind output picks
up at the end of the day, as solar output declines and electricity demand peaks. Given the
complementarities, a balanced mix of solar and wind technologies, will facilitate a reduction in the
amount of baseload generation required from fossil fuel sources.
Figure 4
Intraday Solar Generation
Intraday Wind Generation
7
Figure 5. Intraday Demand for Electricity
9. Late mover advantage
Ireland has the opportunity to learn from the mistakes of other countries, that introduced
excessively high Feed In Tariffs early on and were then forced to cut them, creating significant
investor uncertainty. To stimulate the development of solar in Ireland, a support mechanism should
be implemented that gives a reasonable return to project developers, but which declines over time
to reflect falling costs
8
Section 2: Policy Recommendations
As Section 1 shows, the case for large scale deployment in Ireland is clear. The following section will
propose a series of policy recommendations that will create the right environment to stimulate
private sector investment in solar, without creating an unneccessary burden on the taxpayer. While
a certain level of government support is required in the short to medium term, we believe that the
costs of solar will be close to grid parity by 2020 allowing solar to be deployed on a purely
commercial basis. Post 2020, solar will make a positive contribution to the exchequer as
Independent Power Producers pay tax on revenue earned from power generation.
While the experiences of Irish Solar Energy Association members in many countries have been
drawn upon to formulate these recommendations, the closest comparisions to be made are with the
UK. This is for a number of reasons. Firstly, the UK has a similar climate to Ireland and thus the
business case for solar is equivalent. Secondly, as an EU member the UK suffers from the same
artificially high import prices on solar modules imposed by the European commission as Ireland.
Finally, compared to other EU countries such as Spain and Italy, the UK solar market developed
relatively late, resulting in the regulatory framework for solar that has evolved in the UK being more
sustainable, although there are still a number of lessons to be learnt.
1. Define an achievable target of 500MW of installed capacity by 2020
The UK experience
In 2013, the UK published a strategy for solar, establishing a target of 20 GW of installed capacity by
2020. Solar will therefore represent 15% of total renewable energy capacity. Total installed capacity
will be balanced between utility-scale ground mounted, commercial rooftop and ground mounted.
Lessons learnt
Earlier forecasts for the deployment of solar failed to predict how rapidly ground mounted solar
farms would be deployed, resulting in the support mechanisms being revised in 2011 and an
effective cap being place on the size of solar farms in 2014. Furthermore, deployment of commercial
rooftop schemes was slower than anticipated.
Policy recommendations for Ireland


Adjusting the UK targets on a pro-rata basis for Ireland’s population, and taking into account
that the deployment of solar in the UK started in 2010, a target of 1.6GW of installed
capacity is achievable in by 2025, with 500 – 800MW achievable by 2020, depending on how
quickly an appropriate regulatory framework is put in place.
From day one, balance should be struck between utiility scale (40%), commercial rooftop
(20%) and residential (40%) solar plants (figure 6). Regular reviews should be conducted with
industry to ensure this balance is maintained.
9
Figure 6. Projected solar capacity in Ireland by segment, 2020
200 MW
200 MW
Residential
Industrial
Large Scale
100 MW
2. Implement sustainable support mechanisms
The UK experience
The UK currently has in place three different support mechanisms for solar:




Contracts for Difference: An auction-based system for projects larger than 5MW
Renewable Obligation Certificates: A semi-fixed subsidy scheme for projects between 250kw
and 5MW. Larger projects also qualify for Renewable Obligation Certificates until March
2015.
Feed In Tariffs: Similar to the Irish REFIT scheme. A fixed subsidy for projects smaller than
250kw. Different levels of support are defined for different sizes of projects.
Until June 2014, investments in utility scale solar projects qualifed for tax relief through the
EIS scheme.
Lessons learnt




Prior to 2011, support levels were set too high, resulting in a ‘Solar Gold Rush’. This forced
the government to cut subsidies for projects greater than 250kw by 70% at short notice. This
created a huge disruption to the nascent UK solar industry and impacted investor
confidence.
In 2014, faced with a more rapid than expected deployment of large-scale solar projects, the
government announced that support through the Renewable Obligation Certificate system
for projects greater than 5MW would be discontinued from March 2015, two years ahead of
schedule. Given that the lead time for a large scale project is approximately 12 – 18 months,
this has resulted in a number of project no longer being feasible, and developers facing
significant losses.
With the accelerated demise of the Renewable Obligation Certificate system, the
government has been forced to implement Contracts for Difference ahead of schedule,
resulting in a sub-optimal mechanism being brought in.
As the solar industry had matured in the UK by 2014, it was appropriate to eliminate tax
relief through EIS schemes. However, a timetable for the elimination of such support should
have been established well in advance.
10
Recommendations for Ireland
Give solar the same status as other renewable technologies
Solar energy should be eligible for the same renewable energy support mechanism as other
technologies such as wind and biomass. While this is currently the REFIT mechanism in Ireland, other
support systems such as Contracts For Difference or Renewable Obligation Certificates could be
considered.
Implement a transparent, unified support mechanism
Assuming that a REFIT mechanism is introduced for solar, the key requirements are as follows:
1)
2)
3)
4)
The tariff should be fixed and published three years in advance.
Power Purchase Agreements for each tariff should be set for 20 years, index linked to CPI
Published tariffs should decline over time to reflect the falling costs of solar.
A unified Feed In Tariff should be introduced for all three segments: residential, commercial and
large scale. Additional incentives should be provided for residential and commercial customers
at the installation phase.
5) Utilities should be obliged to purchase all solar power exported to the grid at the agreed Feed In
Tariff. The subsidy reclaimed from the government should be the different between the FIT and
the prevailing wholesale price of electricity.
Set REFITs at an affordable, fair level.
Based on our analysis of the market, a REFIT of €0.15/kwh in 2015, declining by 5% per annum,
would be sufficient to stimulate the deployment of solar in Ireland. Assuming that energy prices in
Ireland continue to rise by 5% per annum, the REFIT will converge with the wholesale cost of
electricity by 2025 (see table 2). For large-scale solar, this rate will give a ‘fair’ Internal Rate of Return
to investors of 8% based on current construction costs. Residential and commercial rooftop solar will
require additional incentives, particularly tax relief on installation costs to be viable in the short run.
Table 2: Recommended REFIT levels for solar (2015 -2025)
2022
80.20 €
2023
84.21 €
2024
88.43 €
2025
92.85
€ 150.00 € 142.50 € 135.38 € 128.61 € 122.18 € 116.07 € 110.26 € 104.75 €
99.51 €
94.54 €
92.85
€
15.30 €
6.11 €
-
Wholesale electricity
cost (€/MWH)
REFIT
€
Cost of subsidy
(€/MWH)
2015
57.00 €
93.00 €
2016
59.85 €
82.65 €
2017
62.84 €
72.53 €
2018
65.98 €
62.62 €
2019
69.28 €
52.89 €
2020
72.75 €
43.32 €
2021
76.39 €
33.88 €
24.55 €
11
Support residential and commercial projects through tax relief on installation costs
Residential
A typical solar installation for a three bedroom house will be 3 kilowatts. Installation costs in 2014
are approximately €6,000, or €2,000 per kilowatt. Depending on the location in Ireland and the
orientation of the roof, this system will generate from 2,500 – 3000kwh per annum.
Installation costs (materials and labour) for residential rooftop systems should be on a reduced rate
(13.5%).
Homeowners should be able to claim tax relief at the marginal rate of income tax for the entire cost
of installation. Assuming an average tax rate of 40%, this will cost the exchequer approximately
€2,400 per installation in foregone tax. A mechanism where installation is financed through a bank
loan, the total repayment (interest plus principal) should be eligible for tax relief at the marginal rate
of income tax.
The government should consider underwriting loans made by banks for the purposes of retrofitting
houses for solar. Such loans would be offered by the bank that holds the mortgage for the property
as the value of the solar equipment will enhance the value of the security.
Commercial and Industrial rooftop
Installation costs for commercial rooftops are higher than for ground mounted installations. In
addition, generators should be incentivised to optimise on-site consumption rather than exporting it
to the grid.
A two tier REFIT is therefore proposed for commercial rooftop as follows:
€0.06/kwh for onsite generation and consumption
€0.15/kwh for electricity exported to the grid
Investment in utility-scale projects should qualify for EIIS relief until 2018
Utility-scale solar can be deployed far more rapidly than commercial or domestic rooftop solar
systems. As such, in order to kickstart the industry and ensure that Ireland achieves its 2020 carbon
reduction targets, early investors should qualify for tax relief through the EIIS Scheme.
From 2018, this additional relief should no longer be required as REFIT levels will be set to generate
a ‘fair’ return of 8% to investors.
12
3. Define clear planning guidelines
The UK experience
Domestic and commercial rooftop solar projects do not require planning permission, unless a listed
building is involved. For ground-mounted projects, the planning process is decentralised and highly
transparent, with a well defined list of statutory consultees. Best practice guidelines have been
developed jointly between the UK Solar Trade Association and government planning authorities and
are based on best practicewith particular attention to Landscape and Visual Impact, local ecology
and archaeological considerations. Planning determinations are rapid, ranging from 8 weeks to 13
weeks.
Lessons learnt
Prior to 2014, some projects were approved on top tier agricultural land, resulting in minor backlash
in certain areas.
Recommendations for Ireland
Define planning guidelines in advance
An Bord Pleanala and the Irish Solar Energy Association should jointly define planning guidelines for
solar in Ireland. This should take into account the factors listed above, particularly the need to avoid
top tier agricultural land, but should also allow farmers to diversify their income through solar
projects.
Define a fast-track process for brownfield sites
Ireland benefits from plenty of suitable land for large scale solar projects, particularly marginal
agricultural land and cutaway bogs in the Midlands. A fast-track planning process should be
established for such sites, with planning application costs kept to a minimum to compensate solar
developers for the lower levels of solar radiation in such areas.
Waive planning permission requirements for rooftop systems
Similar to the UK, there should be no requirement for planning permission for rooftop systems, with
the exception of listed buildings.
4. Implement clear grid application guidelines
The UK experience
The UK grid operators have successfully managed to connect 4.6 GW of solar projects to local grids
since 2010. The consequence of this is that the grid in many areas, particularly in the sunnier parts of
Southern England is completely saturated. As a result many developers of solar proejcts are adopting
a ‘scattergun’ approach, sending in multiple applications for grid in different areas in the hope of
finding some spare capacity.
13
Lessons learnt



Applications to connect to the grid are free, providing no incentive to carefully consider
applications in advance.
The UK regulator, Ofgem, does not permit regional grid operators to budget in advance for
more capacity in areas with high demand for connections, limiting the future scope for
expansion of renewable energy in certain areas.
There is no scope for a number of renewable energy developers to collaborate to reinforce
the grid in a particular area on behalf of all of them.
Recommendations for Ireland
Update EirGrid’s Grid25 strategy to take solar into account
Ireland has already budgeted €3.2bn to upgrade the grid by 2025 to adapt to the requirements of
renewable energy. As shown in Section 1 above, the generation profile of solar complements wind.
As such, it should be possible to update the Grid25 strategy to incorporate solar without needing to
increase the budget.
Define a transparent grid application process
The following process to connect to the grid should be adopted:
1) Prior to submitting an application a preliminary assessment should be carried out by the grid
operator at a nominal cost e.g. €500 per study. A report should be issued indicating the likely
capacity available.
2) Assuming available capacity, formal grid applications should only be accepted on the basis of
the following:
a. Evidence that the landowner has agreed in principal to lease the land for the
purposes of developing a solar farm
b. Evidence from a recognised planning consultant that the land appears to be suitable
for solar.
3) An application fee of €2,000 should be charged.
4) Grid operators must commit to a turnaround time of two months from the formal
application date.
5) Where multiple projects are competing for limited capacity in a particular area, a scoring
matrix should be used to approve the most suitable projects, rather than relying on first
come, first served. More advanced projects, e.g. those with planning permission, should be
given priority.
14
Section 3: Costs and Benefits
This section provides an analysis of the projected cost to the Irish taxpayer to roll out 500MW of
installed solar capacity between 2015 and 2020 based on a stable rollout schedule where investors
receive a ‘fair’ rate of return based on the REFIT levels recommended above.
Table 3 shows the projects rollout schedule for solar in the residential, commercial and utility scale
categories and shows how the unit cost of the subsidy decreases over time as REFIT levels are
reduced and wholesale energy prices increase. As such, the total annual cost to the exchequer will
increase between 2015 and 2020 as more capacity is rolled out, and then decline from 2021 to 2034
as the gap between increasing wholesale energy prices and the REFIT narrows. This is illustrated in
Figure 7.
Over 20 years, the total cost of the support programme will be €187m. In the same period, the total
amount of electricity generated by the 500MW will be 9,000,000 MWh. This means that the average
cost of the subsidy per kwh will be €0.021. This is less the current subsidy for wind, an industry that
has been developing over 15 years.
Table 3: Projected costs of solar 2015 -2021
Figure 7. Annual cost of solar subsidies
15
Job Creation
As Section 1 outlines, the European Photovoltaic Industry Association estimates that 6 jobs are
created for every MW of solar capacity installed. On that basis, the rollout of 500MW of solar
capacity will create a minimum of 3,000 jobs in Ireland. Based on the projected costs of solar shown
in table 3 above, figure 8 shows the annual cost per job created. This declines from €14,000 to
€8,000 per job between 2015 and 2020 as more capacity is rolled out. Between 2020 and 2034, the
cost per job decreases to zero as the overall cost of the support mechanism decreases.
It should be noted that this analysis focuses purely on jobs created to directly service the domestic
Irish market. It is likely that further jobs will be created as international solar companies, seeing the
opportunities in the Irish market, choose to establish the European operations here. In particular,
given the current wave of EU protectionism, it is believed that a number of Chinese solar module
manufacturers are considering setting up a base in Ireland.
Figure 8. Annual cost per job created
16
Conclusion
In order for Ireland to achieve its 2020 carbon reduction targets, solar must be considered as a major
part of the renewable energy technology mix. This paper has shown that the cost of solar has
reduced significantly over the past five years and that solar is on track to be the cheapest form of
renewable energy by 2020 and will reach grid parity no later than 2025.
From a policy perspective, Ireland benefits from a late mover advantage and can develop a
regulatory environment and support mechanism based on best practices and lessons learnt, thus
avoiding some of the policy U-turns adopted by other countries. In particular a sustainable support
mechanism needs to be implemented immediately, that will provide appropriate incentives for early
investors, without creating a long term burden for taxpayers. Implementing a REFIT of €0.15/kwh for
solar in 2015 that reduces by 5% per annum, would meet these requirements and would cost the
taxpayer an average of €0.021/kwh over 20 years, less than the currently level of subsidy received
today by the mature wind industry.
Finally, in spite of the absence of a domestic market, the Irish solar industry is already very
successful, with major projects being led by Irish companies across Europe, Africa and Latin America.
These companies, through the Irish Solar Energy Association, are willing to deploy their global
expertise in order to work with policymakers to develop a sustainable and fair policy framework for
solar energy in Ireland.
17
Appendix 1: Irish Solar Energy Association members
The Irish Solar Energy Association (ISEA) is committed to promote the adoption of solar energy in
Ireland by putting forward a single voice for the industry. Founded in May 2013, the ISEA works in
conjunction with its members to achieve a sustainable regulatory framework and incentives for solar
in order to deliver an increasing contribution to Ireland’s energy needs. The ISEA is a coalition of 17
companies with activity in the solar industry employing 10,000 people.
The ISEA was founded by BNRG Renewables, an international Renewable Energy development
company. Headquartered in Dublin, Ireland the company has projects under development in seven
countries. Specialising in utility-scale solar PV projects, BNRG’s work covers all aspects of
development including site assessment, obtaining planning and grid connection rights, construction
management and long-term asset management.
18
Irish Solar Energy Association members
Company
Amarenco Solar
Augmentis Ireland Ltd.
Beauchamps Solicitors
BNRG Renewables
Ecologics Solar Solutions
Area of activity
Amarenco raises capital for long term investment in
utility scale Solar PV infrastructure assets and adds
value in the origination, structuring, financing and
ultimate asset management of its transactions.
Augmentis provides strategic consulting and
investment advisory services to companies small,
medium and corporate. Specific areas of consulting
support include utilities, customer services,
regulation and business strategy and
implementation.
Full service law firm
BNRG Renewables is an international Renewable
Energy development company specialising in utilityscale PV projects.
Ecologics Solar supplies renewable energy
technologies in Ireland specialising in high
performance solar panels, solar photovoltaic (PV)
panels and other renewable energy sources such as
heat pumps.
Website
Employees
Turnover
http://www.amarencosolar.c
om/
http://augmentis.ie/
5
http://www.beauchamps.ie/
150
http://www.bnrg.ie/
25
€6,400,000
http://ecologics.ie/
4
€400,000
4
Electronomy
Solar PV / Renewable Generation
n/a
Eversheds
Eversheds is a full service international law firm
providing expert legal services to a predominantly
business client base across a broad spectrum of
areas.
http://www.eversheds.com/
Investricity
Investricity is involved in the finance and
development of renewable energy infrastructure.
http://www.investricity.com/
4000
Island Renewable Energy
KPMG
Mercury Engineering
Island Renewable Energy is a European renewable
energy business that develops, finances, builds,
operates and sells wind and solar assets across a
select number of European markets.
KPMG's Energy & Natural Resources practice assists
companies in the oil and gas, power and utilities,
renewable energy, mining, forestry and
environmental management industries to leverage a
host of new opportunities as well as responding to
industry trends, business issues and compliance
requirements.
Mercury is a leading European contractor
specialising in the provision of mechanical, electrical,
fire protection and technology services to a range of
sectors including commercial, data centre,
manufacturing, infrastructure and healthcare.
http://www.islandrenewable.
com/
10
http://www.kpmg.com/ie/en/
industry/energy/pages/defaul
t.aspx
1700
http://www.mercuryeng.com
/ie/
4500
€600,000,000
€500,000
One Call Energy
One Call Energy is the supplier of retro-fit energy
saving and water saving products in Ireland
n/a
3
Power Capital
Power Capital is an Irish based private equity firm
specialising in the energy market. They source,
structure and acquire a range of bespoke energy
investments for their clients.
http://powercapital.ie/
5
Randal N Gray & Co
€2,000,000
n/a
3
http://renewableevolution.co
m/
1
<€1,000,000
Wallace 7 Co.
Accounting and Taxation Services
Renewable Evolution assists clients to identify viable
solar PV projects and facilities the development,
investment and construction process from initial
discussions to the transfer of the first KWh to the
grid.
Legal services
Wexford Solar Limited
PV Solar Development
n/a
2
n/a
(new
company)
Renewable Evolution
n/a